Kyivstar, the largest mobile operator in Ukraine, is raising its tariffs by 25% on average, providing subscribers with more services and bonuses.
“Kyivstar always strives to provide high-quality communication, stable Internet and additional services that meet the modern needs of our subscribers. That is why the company has revised the terms of some tariff plans for contract subscribers and will revise some more subscription tariffs by the end of the year. On average, the price will change by 25% of the tariff cost,” Kyivstar’s press service said in response to a request from Interfax-Ukraine news agency.
Subscribers will receive more benefits and services in the tariff: additional minutes for calls to other networks, additional gigabytes of mobile Internet, and the ability to connect additional unlimited services, the press service said.
The tariff plans LOVE UA Light Contract 2023, VASH Region, VASH Optimum, Smart Max, VASH Premium, VASH Premium+ have already changed. Additionally, the plans have promotional superpowers: unlimited internet, unlimited calls and unlimited SMS, which can be activated until June 30, 2025 inclusive.
The tariff plans are also closed: “VASH Vybir, Smart, Kyivstar 4G, Bezlim, Kyivstar 4G Extra+ 2018, LOVE UA Magnet Contract 2023. The company has offered other tariffs to users of these plans that are closer to their consumer needs, the press service said.
The choice of tariffs to be changed depends on many factors. In particular, they take into account the growth in service consumption, as well as the fact that the price of some tariffs has remained unchanged for a long time, the press service said. Kyivstar also periodically unifies its tariff plans to optimize service processes and ensure the efficiency of operations, closing them to new connections.
The company emphasized that subscribers can choose a different tariff that best suits their needs and capabilities. This can be done in the Tariffs section on the company’s website, in the My Kyivstar app or in any Kyivstar branded store.
The last time before the current increase, the company raised tariffs for some subscribers in April-May 2024. This never happens at the same time for all customers: indexation is carried out in parts and for different groups of subscribers, the Kyivstar press service noted.
It is reported that some tariff plans have not changed for more than a year, and for a number of others there have been no changes since the beginning of the full-scale invasion of Russia.
The decision to change the cost of services was influenced by the growth of consumption, the economic situation and the cost of providing the network with alternative sources of electricity, the press service says, emphasizing that the changes are a necessary step and a reasonable response of the company.
According to the State Statistics Service, the cost of telecommunications services has increased by an average of 4.3% since the beginning of the year, while electricity prices have risen by 63.6%, utilities by 18.6%, and food by 10.8%, the press service said.
Kyivstar recalled that it had purchased almost 2.5 thousand generators and 145 thousand lithium batteries to ensure uninterrupted operation of the grid during outages. The company’s expenses have increased as the equipment needs to be maintained and refueled. Since the beginning of the full-scale invasion, Kyivstar has already used 3 million liters of fuel for generators. The company has formed separate units to handle the equipment and pays salaries to employees who refuel the generators every day, starting at 5 am.
“The tariff revision will allow the company to continue investing in improving the network and providing stable communication for our subscribers. Thanks to these changes, we will be able to work even harder on energy sustainability, maintaining uninterrupted network operation, developing 4G and building new base stations across the country to make our services even more affordable and better,” Kyivstar’s press service said.
The company could not predict how the situation will develop in 2025, noting that “there are no exact dates or a list of tariffs that may change.”
“We are always guided by the principles of transparency and inform subscribers in advance if such changes are planned,” the mobile operator’s press service emphasized.
“Since February 2022, Kyivstar, the largest Ukrainian telecommunications operator, has expanded its 4G coverage to more than 4.4 thousand settlements, and today its high-speed mobile Internet is available to more than 95.6% of the population in the government-controlled territory of Ukraine, up from 94.7% a year ago.
“To achieve such results, more than 18,700 modernization works were carried out and more than 7,000 new base stations were built during the full-scale invasion alone,” the company said in a press release on Thursday.
In early December 2023, Kyivstar reported that since February 2022, the coverage area of the 4G network has increased by almost 4 thousand settlements, for which the telecom operator has built 1.4 thousand new 4G base stations and updated the existing equipment by 12 thousand base stations.
It is noted that the highest 4G coverage rates are in Kyiv – 99% and Dnipro regions – 98%.
It is noted that Kyivstar currently has the largest number of 4G base stations located in Ukraine.
“The expansion of 4G coverage continues even in small towns and villages throughout Ukraine, as well as along highways. In particular, in 2024, 4G coverage was launched in 15 new settlements in Ivano-Frankivsk region, 36 in Lviv region and 38 in Vinnytsia region,” the release said.
According to the release, 225 new technology sites were built along the highways in 2024, which increased the quality of 4G coverage from more than 12 thousand km to more than 12.8 thousand km of international and national roads since December.
“Kyivstar reminded that over the next five years (from 2023 to 2027) it plans to invest $1 billion in the development and restoration of Ukraine’s digital infrastructure, as announced at the International Conference on the Restoration of Ukraine in June 2024. In particular, the additional radio frequency spectrum in the 2100 and 2300 MHz bands, for which the company paid UAH 1.43 billion at the November 19 auction held by the NCCC regulator, will be a significant boost to 4G coverage.
According to the press release, the main advantages of 4G are high data transfer speeds, stable connections and higher network capacity, which provide more comfortable conditions for users to access online services, which is important for remote work, education and telemedicine.
As reported, the number of Kyivstar 4G users increased by 4.3% in the third quarter of 2024 to 15.3 million, or 65.4% of the total subscriber base, up 4.8% percentage points year-on-year.
At the same time, Kyivstar’s mobile subscriber base decreased by 3.3% year-on-year to 23.3 million in the third quarter. The number of Ukrainians living outside Ukraine had an impact on the subscriber base, the quarterly report said.
Kyivstar’s revenue in January-September 2024 increased by 4.7% to UAH 26.86 billion, while EBITDA decreased by 2.6% to UAH 15.13 billion.
Kyivstar, Ukraine’s largest mobile operator, intends to invest UAH 1.43 billion in the radio frequency spectrum 1940-1945/2130-2135 MHz and 2355-2395 MHz, the company’s press service said on Tuesday. At the same time, it is specified that obtaining additional radio frequency spectrum for 15 years will significantly strengthen the company’s capabilities to expand 4G coverage and improve the quality of services in all regions of the country.
The company emphasized the important role of Kyivstar in the development of the electronic communications industry in Ukraine, in particular in the introduction of 4G. The press service recalled that it was Kyivstar that offered the state an innovative approach to solving the problem of fragmented spectrum of frequencies – in 2018, the company supported the proposal of the national regulator, returning to the state the frequency band in the 1800 MHz range. This allowed for a transparent auction, which resulted in the state budget receiving UAH 5.43 billion and consumers receiving high-quality 4G coverage across the country.
In 2020, Kyivstar returned the frequency band in the 900 MHz band to the state for the second time voluntarily and free of charge.
“To further bridge the digital divide between urban and rural areas, it was important to deploy 4G also in the lower 900 MHz frequency band, which allows for wider coverage, especially along roads and in remote areas. But the spectrum deficit and fragmentation in this band slowed down the technological development of the market,” Kyivstar’s press service said.
The CEO of the company Oleksandr Komarov expressed gratitude to the National Commission carrying out state regulation in the spheres of electronic communications, radio frequency spectrum and provision of postal communication services (NKEC), the Ministry of Digital Transformation and the state for the preparation and holding of a transparent auction for the distribution of frequencies in the spectrum 2100-2300-2600MHz, which will allow to develop infrastructure and improve the quality of mobile communication services for subscribers.
“The auction for licenses to use the radio frequency spectrum is an important step in the development of the electronic communications industry in Ukraine and evidence that the war does not stop investment in state assets, and their effective management can bring significant funds to the budget,” the Kyivstar press service quoted Komarov as saying.
The company also specified that participation in the auction for licenses for the use of radio frequency spectrum in the bands of 2024 is part of the investment program of Kyivstar and its parent company VEON, according to which it is planned to attract $1 billion to the Ukrainian economy during 2023-2027.
Earlier it was reported that the NKEC held an auction for the provision of mobile frequencies for use. “Kyivstar“, ‘Vodafone-Ukraine’ (”VF-Ukraine“) and lifecell (”Lifecell”) received for use for 15 years new frequencies in the bands 2100, 2300 i 2600 MHz cumulatively offering for them 2 billion 894.734 million UAH at the initial total price of 2 billion 871.531 million UAH.
In accordance with the terms and conditions of technologically neutral nationwide licenses established by the NCCEC, each of the winners undertook to ensure the use of the received frequency band for at least 1.5 thousand base stations within 24 months from the license start date, and for the first 12 months – for at least 500 base stations.
“Kyivstar” acquired the right to use for 15 years the frequencies in the range 1940-1945/2130-2135 MHz (without Kiev) for UAH 448 million 500 thousand, in the range 2355-2395 MHz – for UAH 994 million 800 thousand.
Kyivstar, the largest mobile operator in Ukraine, intends to invest UAH 1.43 billion in the 1940-1945/2130-2135 MHz and 2355-2395 MHz radio frequency spectrum, the company’s press service said on Tuesday.
It is also specified that the company’s receipt of additional radio frequency spectrum for use for 15 years will significantly enhance its ability to expand 4G coverage and improve the quality of services in all regions of the country.
The company noted the important role of Kyivstar in the development of the electronic communications industry in Ukraine, in particular in the implementation of 4G. The press service reminded that it was Kyivstar that offered the state an innovative approach to solving the problem of fragmented frequency spectrum: in 2018, the company supported the proposal of the national regulator, returning the 1800 MHz frequency band to the state. This made it possible to hold a transparent auction, which resulted in UAH 5.43 billion for the state budget and high-quality 4G coverage for consumers across the country.
In 2020, Kyivstar voluntarily returned the 900 MHz frequency band to the state free of charge for the second time.
“To further eliminate the digital divide between urban and rural areas, it was important to deploy 4G in the lower 900 MHz frequency band, which allows us to provide wider coverage, especially along roads and in remote areas. However, spectrum shortages and fragmentation in this band also slowed down the technological development of the market,” Kyivstar’s press service said.
The company’s CEO Oleksandr Komarov expressed gratitude to the National Commission for the State Regulation of Electronic Communications, Radio Frequency Spectrum and Postal Services (NCCS), the Ministry of Digital Transformation and the state for preparing and holding a transparent auction for the allocation of frequencies in the 2100-2300-2600MHz spectrum, which will allow to develop infrastructure and improve the quality of mobile services for subscribers.
“The auction for licenses to use the radio frequency spectrum is an important step in the development of Ukraine’s electronic communications industry and evidence that the war does not stop investments in state assets, and their effective management can bring significant funds to the budget,” Kyivstar’s press service quoted Komarov as saying.
The company also clarified that participation in the auction for licenses to use the radio frequency spectrum in the 2024 bands is part of the investment program of Kyivstar and its parent company VEON, according to which it is planned to attract $1 billion to the Ukrainian economy in 2023-2027.
Earlier it was reported that the National Commission held an auction for the use of mobile frequencies. “Kyivstar, Vodafone-Ukraine (VF-Ukraine) and lifecell (Lifecell) received new frequencies in the 2100, 2300 and 2600 MHz bands for 15 years, offering a total of UAH 2 billion 894.734 million for them at an initial total price of UAH 2 billion 871.531 million.
In accordance with the terms of the technology-neutral nationwide licenses established by the NCC, each of the winners undertook to ensure the use of the received frequency band at at least 1,500 base stations within 24 months from the date of the license’s commencement, and at least 500 base stations within the first 12 months.
“Kyivstar acquired the right to use the frequencies in the 1940-1945/2130-2135 MHz band (without Kyiv) for 15 years for UAH 448 million 500 thousand, and in the 2355-2395 MHz band for UAH 994 million 800 thousand.
Revenues of Ukraine’s largest mobile operator Kyivstar increased by 4.7% to UAH 26.86 billion in January-September 2024, while in dollars they decreased by 4% to USD 674 million, the parent company VEON reported on Thursday.
For 9 months of 2024, the company reduced EBITDA by 2.6% to UAH 15.13 billion, and EBITDA margin by 4.2 percentage points to 56.4%.
In July-September, the operator’s revenue increased by 17.9% to UAH 10.25 billion, and by 4.8% to USD 250 million in terms of revenue in dollars. In the third quarter, the operator increased its EBITDA by 6.9% to UAH 5.92 billion, while reducing its EBITDA margin by 5.9 percentage points to 57.7%.
“Kyivstar’s revenue and EBITDA in the third quarter demonstrated strong growth, ensuring resilience and continuity despite a number of challenges, including power outages,” VEON said on its website.
Kyivstar’s capital investments in the third quarter increased by 62.5% to UAH 2.62 billion. Overall, since the beginning of the year, capital investments have increased by 57.5% to UAH 5.97 billion. The operator reportedly increased investments in sustainable communications for Ukraine and further development of 4G.
In addition, Kyivstar has deployed 2.3 thousand generators and 124 thousand batteries in Ukraine, which can ensure autonomous operation of base stations without power for four hours. In addition, Kyivstar installed more than 300 4G base stations in July-September as part of its 4G Everywhere program.
The number of Kyivstar 4G users grew by 4.3% to 15.3 million in the third quarter, accounting for 65.4% of the total subscriber base, up 4.8% year-on-year.
At the same time, Kyivstar’s mobile subscriber base decreased by 3.3% year-on-year to 23.3 million in the third quarter. The subscriber base was affected by the number of Ukrainians living outside Ukraine, the company said in a statement.
In the third quarter, the parent company VEON demonstrated a strong revenue growth of 9.8% year-on-year to $1.038 billion. EBITDA reached $438 million, down 1.5% year-on-year. The company’s investments in the third quarter increased by 51.2% to $198 million.
The total amount of cash and cash equivalents as of September 30, 2024 was $1,019 million (including $143 million related to banking operations in Pakistan and less $211 million in Ukrainian sovereign bonds classified as investments), of which $453 million was kept at the headquarters level.
Ukraine’s largest mobile operator Kyivstar and one of the largest volunteer foundations “Come Back Alive” have accumulated UAH 54.8 million as part of the fundraising for demining of Ukraine’s territories “We Live Here 2.0”.
“Demining of territories remains a critical issue to restore safe life in Ukraine. We plan to close the urgent needs of demining units to the amount of UAH 100 million, providing them with modern Ukrainian equipment,” Taras Chmut, director of the ‘Back Alive’ fund, was quoted as saying in a press release on Tuesday.
Kyivstar clarified that UAH 17.8 million of the mentioned amount was collected at the expense of subscribers who connected the charitable Superpower “Aid to the AFU” or SMS-subscription.
To support the collection, directly the mobile operator transferred 30 million UAH of its own funds.
“We are grateful to everyone who supported the initiative and made a contribution to demining the country, our goal is 100 million UAH. We call on all those who are not indifferent to join the initiative and support the sappers”, – commented CEO of ‘Kyivstar’ Alexander Komarov.
It is noted that the collected funds will be used to provide sappers of the AFU Support Force with Ukrainian-made robotic complexes, transportation and communications.
According to him, the collection includes the transfer of 16 reconnaissance and logistics robotic complexes “Tarakan” (64 vehicles), 8 robotic complexes “Termit” (32 vehicles), 28 vehicles, 4 maintenance workshops, 28 REB vehicles, 100 radios of various types, 1 Vampire drone with thermal imaging cameras for remote demining, as well as 96 drones of various types for sappers’ awareness and related equipment.
It is specified that also the first Ukrainian superpop for dog and cat owners – Bubibo – joined the collection, which within the framework of the project collects UAH 1 million and attracts cats and dogs to support the deminers.
